Utah Small Business Credit Initiative/U.S. Treasury Report
2024 4th Quarter – Oct. 1 to Dec. 31, 2024
The U S Treasury requires states participating in its State Small Business Credit Initiative (SSBCI) program to report program allocations, income, and expenses quarterly and annually. The Treasury’s fiscal year begins in January and ends in December This report is for the Utah Small Business Credit Initiative (USBCI) and its 2024 fourth-quarter (Q4) activities (The reporting period is Oct. 1 to Dec. 31, 2024).
The Utah Governor’s Office of Economic Opportunity (GOEO) administers the SSBCI program, a federally funded initiative to support small businesses’ capital needs. In Utah, we call it the Utah Small Business Credit Initiative (USBCI)
USBCI includes two Treasury-approved loan programs:
1 Capital Access Program (CAP)
2. Loan Participation Program (LPP)
USBCI helps Utah business owners gain access to capital, fostering economic growth and development in rural and underserved markets to ensure that all state regions have opportunities to thrive
Programs that allocate 29% of total funds to small business owners in underserved and rural communities will benefit from additional Treasury funding, which could bring approximately $4 2 million to USBCI.
During the fourth quarter, USBCI supported various small businesses statewide and addressed funding needs across different vertical industries, including farming, beauty, transportation, construction, and more
As of Dec. 31, 2024, USBCI’s efforts have resulted in the following outcomes:
● Committed $9 6 million in loan proceeds reflecting 32 loans to small businesses
● Partnered with four economic development organizations (EDOs) and 15 local lending partners, providing statewide loan opportunities
● Assisted with the distribution of capital across 12 Utah counties, including nine rural counties
In Q4, USBCI successfully reduced the total loan processing time to 20 days or less, meeting the team’s internal processing goal Additionally, USBCI streamlined internal processes to include a seven-business-day turnaround on its initial commitment, providing partners with a faster and more efficient loan approval process
The USBCI team approves loan requests of $1 million or less, while the USBCI loan review committee oversees loans exceeding $1 million.
USBCI is on track to meet its Tranche 1 allocation goal of 80% of the $23 million committed, with progress currently at 60% The team aims to secure an additional $23 million for Tranche 2 by the middle of the first quarter (Q1) 2025, ensuring the program’s continued growth and expansion.
Of the state’s $69 million allocation from the U S Treasury, $58 7 million is designated for LPP, which enhances financial support for Utah’s small businesses. Meanwhile, $10.4 million is allocated to CAP, facilitating access to capital for eligible companies statewide
In Q4, USBCI made significant progress toward the creation and targeted launch of its 2025 statewide Utah chambers of commerce incentive referral program, which is scheduled for July 1st of 2025 as part of Tranche II. The program will offer financial incentive referral fees to Utah chamber partners (up to $7,500 per loan) based on the total loan amount
USBCI plans to promote the incentive program at the 2025 Utah Association of Chambers Winter Conference It aims to secure contracts with chambers statewide to facilitate access to USBCI capital for Utah small businesses while providing referral fees to Utah’s chamber organizations.
Contact us if you have any feedback or questions: business.utah.gov/usbci usbci@utah gov 801-538-8680 @BusinessUtah
* The total represents the SSBCI distribution that could be received from the U.S. Treasury to USBCI if the program meets the requirements of each funding tranche.
^ For three loans, bank payments were completed before USBCI participation could be finalized, resulting in the return of USBCI funds. Additionally, a loan commitment made last quarter was withdrawn during the current quarter
